Pilot program on participation of third-party logistics providers in CTPAT

(a)

Establishment

(1)

In general

The Secretary of Homeland Security shall carry out a pilot program to assess whether allowing entities described in subsection (b) to participate in CTPAT would enhance port security, combat terrorism, prevent United States supply chain security breaches, or otherwise satisfy the goals of CTPAT. (2)

Federal Register notice

Not later than one year after the date of the enactment of this Act, the Secretary of Homeland Security shall publish in the Federal Register a notice for entities described in subsection (b) to apply to participate in the pilot program required under paragraph (1). (b)

Entities described

An entity described in this subsection is— (1)a non-asset-based third-party logistics provider that— (A)arranges international transportation of freight and is licensed or bonded by the Federal Maritime Commission, the Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation; and (B)satisfies such other requirements as the Secretary of Homeland Security specifies in the Federal Register notice required pursuant to subsection (a)(2); or (2)an asset-based third-party logistics provider that— (A)facilitates cross border activity and is licensed or bonded by the Federal Maritime Commission, the Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation; (B)manages and executes logistics services using its own warehousing assets and resources on behalf of its customers; and (C)satisfies such other requirements as the Secretary of Homeland Security specifies in the Federal Register notice required pursuant to subsection (a)(2). (c)

Application

An entity that wants to participate in the pilot program under subsection (a)(1) shall submit to the Secretary of Homeland Security an application at such time, in such manner, and containing such information as the Secretary may require. (d)

Requirements

In carrying out the pilot program under subsection (a)(1), the Secretary of Homeland Security shall— (1)ensure that— (A)not more than ten entities described in paragraph (1) of subsection (b) participate in the pilot program; and (B)not more than ten entities described in paragraph (2) of such subsection participate in the pilot program; (2)provide for the participation of each of such categories of entities on a voluntary basis; and (3)continue the pilot program for a period of not less than one and not more than five years after the date on which the Secretary publishes the Federal Register notice required pursuant to subsection (a)(2). (e)

Report required

Not later than 180 days after the termination of the pilot program under subsection (d)(3), the Secretary of Homeland Security shall submit to the appropriate congressional committees a report on the findings of, and any recommendations arising from, the pilot program relating to the participation in CTPAT of entities described in subsection (b), including an assessment of participation by such entities. (f)

Report on effectiveness of CTPAT

(1)

In general

Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report assessing the effectiveness of CTPAT. (2)

Elements

The report required by subsection (a) shall include the following: (A)An analysis of— (i)security incidents in the United States cargo supply chain during the five-year period preceding submission of the report that involved criminal activity, including drug trafficking, human smuggling, or terrorist activity; and (ii)whether such incidents involved entities participating in CTPAT or entities not participating in CTPAT. (B)An analysis of causes for the suspension or removal of entities from participating in CTPAT as a result of security incidents during the five-year period referred to in paragraph (1). (C)An analysis of the number of active CTPAT participants involved in one or more security incidents while maintaining their status as participants. (D)An analysis of CTPAT’s benefits for its participants. (E)Recommendations, as appropriate, to the Commissioner of U.S. Customs and Border Protection for improvements to CTPAT, including with respect to preventing security incidents in the United States cargo supply chain and enhancing CTPAT benefits for participants. (g)

Definitions

In this section: (1)

Appropriate congressional committees

The term appropriate congressional committees means— (A)the Committee on Homeland Security and Governmental Affairs and the Committee on Finance of the Senate; and (B)the Committee on Homeland Security and the Committee on Ways and Means of the House of Representatives. (2)

CTPAT

The term CTPAT means the Customs Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.).